The listing on the Toronto Stock Exchange (TSX), preferred over New York because of its experience in the mining sector, would value VMH at USD 4.00 billion and is expected to be priced between September and December.

Four investment banks have been hired to steer the process, the people added, without naming them.

In April, Reuters reported that Morgan Stanley, JP Morgan and Bank of America were in contention for underwriting roles.

VHM parent Votorantim will use the proceeds to invest in energy and other industries and cut its net debt, which stood at BRL 15.80 billion (USD 4.90 billion) as of the end of Q1 2017.

Over half of all IPOs in the mining industry last year were raised on the TSX and its smaller cousin, the TSX Venture Exchange.

In 2013, Votorantim Cimentos, the group’s cement manufacturing unit, touted a joint listing on Bovespa and the New York Stock Exchange.

The offering was slated to raise up to BRL 7.60 billion before being withdrawn in June, only two months after a request was lodged with the local bourse.

In addition to its Brazilian operations, VHM holds a majority stake in public Peruvian miner Milpo, having increased its ownership in recent years.

Votorantim is controlled by Brazil's billionaire Ermirio de Moraes family and employs 44,000 people across 23 countries globally.

Founded in 1918, the Sao Paulo-based conglomerate began as a textile factory before diversifying its activities.

It now operates in a wide range of sectors, including energy, steel, pulp, agribusiness and finance.

The group posted revenue of BRL 26.70 billion for 2016, a 9.8 per cent fall from the BRL 29.6 billion achieved in 2015.